Human Capital Management White Papers
Growing Old Together: Firm Survival and Employee Turnover
Overview Labor market outcomes such as turnover and earnings are correlated with employer characteristics, even after controlling for observable differences in worker characteristics. The paper argues that this systematic relationship constitutes strong evidence in favor of models where workers choose how much to invest in future productivity. Because employer characteristics are correlated with firm survival, returns to these investments vary across firm types. The paper describes a dynamic general equilibrium model where workers employed in firms more likely to survive choose to devote more time to productivity-enhancing activities, and therefore have a steeper earnings-tenure profile.
| Publisher | Federal Reserve Board | File Format | PDF, requires Acrobat Rdr 5 |
|---|---|---|---|
| Date Published | April 2005 | Downloads | 29 |
| Format | White Papers | ||
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